Media by Definition

Iolo JonesCEO, TV Everywhere

The technology landscape is becoming every more complex

Social TV > Fragmented TV > Networked TV

• From a few channels to hundreds of channels to millions of channels

• Fragmentation• More devices• ‘MeTV’ – TV Everywhere• Shift in the balance of power, e.g.

Hulu, Samsung• In an always-on age,

what is content ?

Increasing opportunities for secondary rights markets

Linear deal > Formats > Exploiting complex markets

• The long tail hasn’t been profitable to date

• But will need to be in future• Importance of primary markets for secondary rights and secondary

markets for primary rights

The New Rights Markets

Simple sell > Complex sell

• Formats• Co-production• ‘360’ – related websites, publications, network services• Licensed products• Advertising & sponsorship rights• Complex distribution patterns• Complex monetization models - £ > p

The failure of DRM

Open Market > Restricted Market > Measured Market

• Restricting content hasn’t worked (with a few exceptions)• Tracking has become more important than policing• The market works against DRM• Lessons from music• Requiring a fundamental shift in business models

Watermarking & centralised hosting

Physical > Download > Always on

• The ability to control distribution centrally• Requires ‘always on’ streaming• e.g. Bundling music with mobile phones• e.g. Digital cinema distribution

Towards an online rights marketplace

• Rights markets are highly inefficient• Almost no rights are traded online• More important in ‘self-funding’ environment• Fragmented market requires wider distribution to achieve

profitability• Opening new, unexploited markets• Automating otherwise unprofitable sales

The future - consumer aggregated buying

• Consumers use network effect to buy rights• e.g. Expatriates group to buy rights to sporting events• Might spin off social networks, e.g. Facebook

Trends

• Production costs will need to be covered by multiple income streams

• Formats, licensing and spin-offs will become far more important

• A gradual move to online distribution (from marketing to display)

• Less revenues from more sources• Rights will need to be actively managed using sophisticated

tools